2 Answer saved Marked out of 2.0 Flag question Time left 1:11:22 A business purchases a motor vehicle at a cost of $40,000 for use in normal operations. It has an estimated residual value of $1,000 and useful life of 10 years. After using the fixed asset for 4 years, the business changed its remaining useful life to be 5 years. This means that for the next 5 years, the depreciation expense to be recorded in the books will change and the depreciation expense already recorded in the books for the previous 4 years will............ a. increase or decrease; it all depends on the new residual value and new remaining life b. remain unchanged Oc. decrease Od. increase Clear my choice Time left 1:11:36 6 Question 1 Answer saved Marked out of 2.0 Flag question 12 12 Which of the following is TRUE concerning goodwill? O a. Goodwill is only recorded if the net worth of a business is more than its purchase price. O b. If the current goodwill balance in the books is more than the revalued balance at the end of the period, a loss on impaired goodwill must be recorded. O c. Goodwill is an intangible asset but it has no value to a business. d. Goodwill can only be recorded by the selling business (the business that is being sold). Clear my choice Next page gation 5 6 Question 5 Answer saved Marked out of 2.0 Remove flag 10 11 12 16 17 K Time left 1:06:59 Galen University paid $40 to repair a flat tire on one of its motor vehicles. The accountant incorrectly recorded this as a debit to the accumulated depreciation motor vehicle. How will this error affect the financial statements? a. owner's equity on the balance sheet would be understated Ob. assets on the balance sheet would be understated Oc. net income on the income statement would be overstated d. expenses on the income statement would be overstated Clear my choice Previous page Next page 5 6 Question 16 Answer saved Marked out of 2.0 PFlag question = 11 12 5 17 Time Smucker's Company sold equipment. It costs $50,000 and its accumulated depreciation balance is $40,000. The selling is $12,000 cash. One of the journal entries required for the company to record this sale would include a: O a. debit to Accumulated Depreciation for $12,000. b. credit to Gain on Sale for $2,000. C. debit to Loss on Sale for $10,000. O d. credit to Equipment for $12,000. Clear my choice Previous page Next pag Question 5 Answer saved Marked out of 2.0 P Flag question Time left 0:23:41 Galen University paid $40 to repair a flat tire on one of its motor vehicles. The accountant incorrectly recorded this as a debit to the accumulated depreciation - motor vehicle. How will this error affect the financial statements? O a. owner's equity on the balance sheet would be understated b. assets on the balance sheet would be understated OC. net income on the income statement would be overstated d. expenses on the income statement would be overstated Clear my choice Previous page Next page Question 10 Answer saved Marked out of 2.0 P Flag question A fixed asset purchased on March 8, 2020 and is sold on August 25, 2023 is to be depreciated for how long? Oa. 3 years Ob. 2 years, 6 months O c. 3 years, 6 months 2 years, 5 months Clear my choice Previous page Time Left 0:22:49 Next page